Digital continues to gain rapid interest and investment as a result of the disruptive impact of the pandemic.
It is fast becoming a companion for improving supply chains, with CPOs shifting their decisions and investments into new technologies to react quickly and appropriately.
The latest insight into Supply Chain Resilience from Raconteur focuses on how supply chains and procurement have been affected and how organizations have adjusted as a result of the pandemic by implementing digital technologies and transformations.
Changes have emerged across all industries, including logistics which has been hit significantly and highlighted key issues in the supply chain, with an increased need for agility, quick thinking and adaptability. Richard Parkinson, Port Director at Solent Gateway revealed global supply chains have become more robust thanks to digital technologies, where companies are able to gather the right data and analyse it to mitigate risks.
There appears to be a positive trend for digital transformations as companies prepare to take action, with 48% partnering with vendors to get a better understanding of technology applications and business benefits, along with 42% piloting new technologies.
“Companies who invested in digital transformations pre-covid
are now outperforming others compared to their industry average…”
…with digitalisation such as Internet of Things and blockchain creating more agile supply chains, enabling them to react quickly. As many as 77% are looking to increase adoption of Artificial Intelligence and Machine Learning technologies, which will help to future proof against unexpected disruption, although this can be enhanced even more with the help of skilled professionals.
To take companies from ‘fragile to agile’, they need support from Board and Executive level members, with only 39% increasing investment in innovative technologies and 74% still using manual methods. A common emerging theme is that implementing full automation across organizations does not automatically equal success, where it becomes stronger when combined with human expertise: some areas will excel with pure technology, others with just humans, and the rest with both benefits to achieve a successful digital transformation. Technologies such as AI and ML are 24/7 accelerators which helps organizations understand who is in their business to help manage relationships and their supply chain.
A recent Interos study revealed the average annual cost of supply chain disruption to organizations has been as much as $184million … however, supply chains are recovering. They have been broken down, only to be built back stronger, improving their strength, agility and resilience by investing in digital technologies within their transformation, helping to provide data visibility to be prepared for any future disruption.
KEY TAKEAWAYS
- Digital and human expertise together = successful digital transformation
- Get ahead and invest in digital
- Gain support from Board and Executive level members
- Data, analysis and digital technologies can help make supply chains more robust
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